The banks have been recapitalized, and corporate liquidity is high.
FORBES: A Madison Avenue Mogul With A Silicon Valley Attitude
They are doing it instead of spending and borrowing, and that is happening both on the consumer side and the corporate side, where liquidity is at high levels across the board among public equities.
Despite the rather dour comments from Lockhart, the tide appears to be shifting in the corporate bond market as liquidity has begun to return and both investment-grade and high-yield premiums over Treasury yields have begun to narrow in recent sessions.
Its trick is finding a way to leverage the collective wisdom contained in equity prices into corporate debt markets, where liquidity is lower and prices are less meaningful.
Or to put it another way, the UK corporate sector has more than enough liquidity or cash to service the entire financing needs and more of British small companies.
For one, liquidity remains strong in the corporate bond market, as spreads in both high yield and high grade corporates have remained relatively tight.
As liquidity returns, they predict, corporate-bond prices will soar, making this the buying opportunity of a lifetime.
The company said proceeds would be used for general corporate and working capital purposes and to improve liquidity.
Liquidity Services also offers a similar product for corporate clients, allowing them to turn old assets and inventory into revenue.
FORBES: Who Got Rich This Week: A Teen Trendsetter, A Government Surplus Liquidator And More
For one thing, with credit tight in America as corporate profits there tumble, they could add some welcome liquidity to America's thirsty markets.
They priced portfolios of mortgage-backed bonds, corporate loans and securities backed by commercial real estate, and provided more liquidity to debt markets.
The corporate market has been buy-and-hold, which created a lack of secondary market liquidity.
Their interest was sparked not merely by a liquidity surge generated by windfall oil revenues, but also by liberalising economic policies, strong corporate performances, a gush of public share offerings and a general wariness of investing abroad in what is perceived to be a potentially hostile West.
Also pushing up neutral, the pipeline of excess liquidity is still filling despite rate hikes, most visibly in commodity speculation and record levels of corporate cash.
应用推荐